New York Attorney General Eric Schneiderman said IT company Infosys had agreed to pay $1 million to settle an investigation into its visa violations in the state.

The settlement resolves whistleblower claims that Infosys, in the course of providing outsourcing services, routinely brought foreign IT personnel into New York to perform work in violation of the terms of their visas.

The attorney general added that Infosys employed foreign workers in New York without paying the prevailing wages or the taxes owed.

“We will not permit companies to violate our laws in order to undercut New York workers. My office is committed to ensuring that our state’s labor marketplace is fair, competitive and transparent for all,” Attorney General Schneiderman said in a statement.

The statement said that Infosys obtained B-1 visas, which are temporary visitor visas, instead of the H-1B work permit which was required. The visitor visas are much easier to get and are not subject to the 65,000 cap on H-1B visas.

“Infosys’ agreement concludes the State of New York’s investigation relating to the amount of taxes the Company paid in 2010–2011 without any criminal or civil charges being filed. While this investigation centered on alleged paperwork errors, the company committed no wrongdoing and denies all allegations made in this regard,” Infosys told ET in an emailed statement.

“This settlement relates to legal issues already resolved under the 2013 settlement with the US Department of Justice, and was reached by both parties to avoid protracted litigation. Infosys maintains robust policies and procedures to ensure adherence with all applicable regulations and laws. Infosys will continue to focus on boosting American innovation, hiring American workers and better serving our valued customers across the United States,” the company added.

The Attorney General’s statement said that New York’s case also relied on the prior investigative work of the U.S. Attorney’s Office in the Eastern District of Texas and other federal law enforcement.

“Infosys workers using B-1 visas were doing work that would otherwise have been performed by U.S. citizens or H1-B visa holders, and were paid significantly less than what comparable U.S. workers or H1-B visa holders would have been paid in the same positions,” the statement said. “Consequently, New York was deprived of taxes that should have been paid on the higher wages that Infosys avoided by its misconduct.”